December 30, 2003

Social Security “No Match” Letters and What They Mean To Employers

As 2003 draws to a close GT has received a number of inquiries from employers regarding “No Match” letters they received this year from the Social Security Administration (SSA). These letters state that an employee’s social security number (SSN) or name (as reported on Form W-2) does not match SSA records. The SSA sends out these letters each year in an effort to correct record keeping and database errors to ensure that workers are properly credited for their earnings.

Employer’s should note that the SSA sends these letters in an effort to update their records and that the SSA has no enforcement authority regarding immigration or federal tax laws. Employers are obligated to request a SSN from an employee when that employee starts work. The employer only needs to request this number once to avoid being fined, absent notification by the Internal Revenue Service (IRS) that the employee’s social security number is incorrect. Notification from the IRS to an employer that an employee’s SSN is incorrect does require further action by the employer to solicit the correct SSN.

Employer’s should be careful not to overreact to a “No Match” letter received from either the IRS or SSA and should proceed with caution, being careful not to violate federal or state laws prohibiting discrimination by requesting that the employee provide or re-verify information or documentation previously provided when completing Form I-9 upon the employee’s initial hire. Employer’s should seek the advice of immigration counsel prior to taking any such action.

For further information please contact GT’s immigration group.